Beijing and the Association of Southeast Asian Nations have signed an expanded free trade agreement as both sides face increased protectionism from the United States.

The ASEAN bloc of Southeast Asian nations and China on Tuesday signed an upgrade to their free trade agreement, which includes sections on digital, the green economy and other new industries, Beijing's Commerce Ministry said.

A tariff hike could potentially damage the Chinese economy. The U.S. imported about $438 billion worth of goods and services from China last year, making it the largest destination for China’s exports. In all, that figure accounts for about 15% of China’s exports, according to the Office of the U.S. Trade Representative.

Stocks spiked to al-time highs to start the week. extending gains from Friday's record-setting rally. Chips and rare earth stocks were among the big movers.

President Trump will meet with Chinese President Xi on Thursday in an attempt to stop the trade war from escalating. Also, Trump terminated trade talks with Canada again after a TV ad played an audio of former President Ronald Reagan criticizing tariffs.

By Ishaan Arora and Sherin Elizabeth Varghese (Reuters) -Gold fell more than 2% to a three-week low on Tuesday, as optimism over easing trade tensions lifted risk appetite and squeezed demand for safe-haven bullion,

The European Union and China will hold talks this week to address trade disputes as Beijing’s restrictions on exports of key minerals and chips risk disrupting Europe’s auto industry.